The government would dilute its stakes in the state-run banks to raise extra capital, suggested Urjit Patel.
India’s Monetary Policy Committee cut’s decides to cut the repo rate by 25 basis points, but, aims remain “focused on its commitment to keeping headline inflation close to 4 per cent on a durable basis”.
“Excluding the HRA impact which will affect the CPI cumulatively, inflation would be a little over 4 per cent by fourth quarter as against 4.5 per cent inclusive of the HRA in the June statement (of RBI policy),” Urjit Patel said.
The Reserve Bank of India on Wednesday slashed the repo rate by 25 basis points to 6 per cent. The growth forecast has unchanged at 7.3 per cent for the current fiscal, said RBI Governor
The RBI informed the Standing Committee on Finance, headed by senior Congress leader M Veerappa Moily, that it had issued tenders for fresh Currency Verification Processing System (CVPS) machines to speed up the counting.
During the course of the meeting, one Congress member even asked whether Reserve Bank of India would be able to provide details of amount of cash deposited post-demonetisation by May 2019–the time when the NDA government completes its five-year term
The panel members have planned to ask Urjit Patel questions regarding RBI’s preparedness for digital transition. They will also question about how much money has come back into the system after the November 8 decision to place the existing currency notes of Rs 1000.
‘Not overly pessimistic about jobs scenario in IT; start-ups can compensate’
The RBI Governor said that creation of a national market, GST will also reduce many inefficiencies within the states while moving goods from within a state and also across the country
The vote marked the first non-unanimous decision in the five meetings since the MPC was formed in September 2016.
Unfortunately, Governor Urjit Patel of the Reserve Bank of India has not been able to understand the index of distress of farmers, when he demonstrated the negative impact on the economy due to farm loan waivers.
RBI Monetary Policy Review: Request for meeting came in ‘silence’ period, bank wanted to retrieve ground lost after noteban
Central bank resists, doesn’t cut; Govt says there’s strong case for easing rate
Cuts SLR by 50 bps to 20% of deposits , tightens overseas rupee bonds norms, slashes GDP estimate
His remarks come in the backdrop of a slew of farm loan waivers granted or promised by various state governments in the run-up to the 2019 Lok Sabha elections in the country.